Inside days were often followed by "inverted" price action relative to the inside day’s close. Inside days that closed higher preceded short-term down moves, and vice versa.

The following analysis shows how specific inside-day signals reflecting these tendencies performed over a 10-year period and offers insight on how to construct useful trade setups. The signals are applied to the EUR/USD pair because previous testing showed the basic pattern tendencies were more consistent and profitable in this market.